The Effectiveness of Fourth U.S. Quantitative Easing Policy on China
These authors contributed equally.
- 10.2991/assehr.k.211209.071How to use a DOI?
- U.S. Quantitative Easing policy; COVID-19; Monetary Policy
As COVID-19 swept the world, the economies of many countries were mauled heavily. Consequently, the United States promoted the fourth Quantitative Easing policy (QE4) to stimulate economic growth, but this policy would also have some impacts on other economies. Therefore, the study chooses the U.S.QE4 as the independent variable and the Chinese economic market as the dependent variable to discuss the impact of the U.S. QE4 on the Chinese financial market. After investigating the factors of the QE4 in the United States, and analyzing the specific impact of the QE4, this article carried out a SWOT analysis, dividing the impact of QE4 in the United States on China into four aspects (strength, weakness, opportunity, and threat). As for strengthening, QE4 created opportunities for China to promote and upgrade economic transformation. However, as for weakness, QE4 affected Chinese domestic markets, including Chinese companies, consumers, prices, etc. Regarding to the opportunity, QE4 improved the internationalization of the RMB and enhanced the status of the RMB. Whereas, as for threatening, QE4 was related to the appreciation of the RMB, leading to a deterioration of trades and risks to financial markets. In summary, QE4 hurt China as a whole. To cope with the effects, China should make steps related to GDP, commodity prices, etc. Moreover, China needs to change its strategies to develop its economy, being prepared to prevent the U.S. from withdrawing from the QE4 and implementing QE policy in the future. This paper makes an objective analysis of quantitative easing policy from different periods to help people understand the policy comprehensively and correctly, summaries positives and negatives impacts on China from the policy, and puts forward some constructive suggestions for other countries to deal with the negative effects from the policy.
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Xinyue Guo AU - Xinyi Liu AU - Ziqi Yang PY - 2021 DA - 2021/12/15 TI - The Effectiveness of Fourth U.S. Quantitative Easing Policy on China BT - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) PB - Atlantis Press SP - 426 EP - 432 SN - 2352-5428 UR - https://doi.org/10.2991/assehr.k.211209.071 DO - 10.2991/assehr.k.211209.071 ID - Guo2021 ER -